Abuja, July 1, 2024 – The Securities and Exchange Commission (SEC) says it will impose N1m fine on banks that fails to comply with guidelines on banks’ recapitalisation exercise.
It said banks must adhere strictly to required procedures to raise capital either by rights issue, private placements, or other authorised means.
SEC said in a statement that applications and supporting documents must be submitted online via email and that documents transmitted would be examined and applicants will be notified electronically if deficiencies are found.
“As the regulatory institution mandated to regulate and develop the Nigerian capital market, the Securities and Exchange Commission (SEC), has the responsibility to ensure a smooth, transparent, and efficient capital raising process by the banks.
“This framework outlines the guidelines and procedures banks are required to follow to raise capital through rights issuance, private placements, or other approved methods during the 2024–2026 re-capitalization period,”” it said.
SEC said applications and documents must be filed electronically via email, adding that observed deficiencies in the applications would be communicated to the applicants electronically.
The Commission advised banks and stakeholders to adhere to those guidelines meticulously, highlighting the framework’s alignment with existing regulatory provisions under the Investment and Securities Act of 2007.
It emphasized the importance of updating corporate information with the Corporate Affairs Commission before filing applications, streamlining the approval process, and enhancing regulatory oversight.
“The commission may require other documents or information as may be necessary. Where an issuer had already filed necessary documents with the SEC (e.g., a Memorandum and Articles of Association (Memart) or a certificate of incorporation or a certificate of increase in share capital, etc),” SEC said.
